How Do I Calculate Sweepstakes Odds?

6 replies
I'm planning on running a sweepstakes on my blog soon. From reading sweepstakes law, I've learned that if I want to make the contest legal for California residents to enter, I have to disclose the odds of winning the prize.

How do I calculate these odds? I have absolutely no idea how many people will enter the contest. So do I just ballpark a number that I think will be higher than the number of entries just to be safe?

Thanks for any help
#calculate #odds #sweepstakes
  • Profile picture of the author myob
    Just make up some numbers; 10 million to 1 is a good start until you generate some stats. The intent of the law is to prevent fraud. You also need to state (in most jurisdictions including California) that no purchase is necessary to enter. Good luck.
    {{ DiscussionBoard.errors[5645654].message }}
  • Profile picture of the author Thomas Frank
    Thanks for the tip!
    {{ DiscussionBoard.errors[5645661].message }}
    • Profile picture of the author JohnMcCabe
      My wife enters A LOT of online sweeps and contests. The most common statement of odds is "odds of winning depend on the number of entries."

      Which is the exact truth. Your probability of winning is (# of entries you hold)/(total # of entries). Multiply by 100 to get the percentage chance of winning.
      {{ DiscussionBoard.errors[5646270].message }}
      • Profile picture of the author myob
        Be careful, because some states are very strict about this, and penalties for violation are severe with charges for "fraudulent business practice", a misdemeanor. For example I know in California, you are required to provide specific odds for winning in a format such as "x chances in 100,000". Until you have substantial stats to backup your claims, it's best to use very high odds. There are people who take such things quite seriously, and just one complaint from a sore loser to the Department of Consumer Affairs or its equivalent could ruin your day.
        {{ DiscussionBoard.errors[5646317].message }}
        • Profile picture of the author JohnMcCabe
          I should have added that most of these online sweeps are run by major corporations and generate millions of entries...
          {{ DiscussionBoard.errors[5654609].message }}
          • Profile picture of the author detomaso
            Call a promotions company and ask them what it would cost to run such a contest for you. They have insurance companies that insure their contests and calculate odds. In the proposal back to you they will include the odds.

            Consider hiring one of them to run it for you to make sure you are in compliance with the law. That will give you peace of mind. I've run many contests for a CHANCE to win $50k or $100k or a new car (WITHOUT a guaranteed Grand Prize winner -- but I have a second, guaranteed prize in the contest for $1000 or $2500) and these cost me $750-1500 in fees/insurance to the promotions company.

            Two I have worked with and are highly recommended are Million Dollar Media dotcom and Odds On Promotions dotcom (sorry I don't have enough posts to add links)
            {{ DiscussionBoard.errors[5655661].message }}

Trending Topics